Roku has quietly surpassed Netflix as the number one streaming platform—not by producing content, but by controlling access to it. Both companies have been around for roughly the same amount of time, but each took a very different path to power.
Netflix: From Mailbox to Mega-Studio
Netflix began as a DVD-by-mail rental service, capitalizing on the inefficiencies of Blockbuster and traditional video rental. It built a massive customer base and steady cash flow long before the internet was capable of handling widespread video streaming. As the World Wide Web matured, Netflix seamlessly pivoted to online streaming. With its head start, it began licensing vast amounts of content from major studios—often cheaply—and became the dominant player in on-demand entertainment.
But that dominance had a cost. Studios soon realized Netflix was making billions off their content while they received only licensing scraps. So, the studios started pulling their content to build their own streaming services—launching platforms like Disney+, Peacock, and Paramount+—triggering the modern “streaming wars.”
Roku: The Trojan Horse in the Living Room
While Netflix was building a media empire, Roku took a different approach. Instead of focusing on content, Roku focused on access. It embedded its operating system into TVs and built devices that connected TVs to the internet, bypassing the need for cable. As smart TVs took over the market, Roku became the default platform for streaming in millions of homes.
Netflix, recognizing Roku’s growing hardware footprint, partnered early on—using Roku’s platform to deliver its service directly into living rooms. In this way, Netflix helped Roku succeed, not realizing it was also empowering a future competitor.
The Split: Roku Becomes the Gatekeeper
As Netflix shifted into content production, Roku stayed in its lane: building hardware and perfecting its role as a platform. But here’s where Roku played its smartest card.
While Netflix alienated studios by outbidding them and locking up content, Roku went to those same studios with a different pitch:
“We don’t want to own your content—we want to give you a direct path to your audience.”
This turned Roku into the digital equivalent of cable infrastructure—except smarter, cheaper, and fully internet-based. Roku embraced not only studios but also competitors like Amazon Prime Video and Apple TV+, integrating them all into its platform. While Netflix was trying to wall off content inside its own ecosystem, Roku was building a digital town square.
And then Roku opened the gates even wider.
A Platform for the People
Roku created tools that allowed independent content creators and niche networks to build their own apps and distribute directly to viewers—no gatekeepers, no negotiations, just pure access. This made Roku the YouTube of TV, turning every living room into a stage for anyone with the vision to create.
As cable & Satellite television fades—unable to match the reach, clarity, and flexibility of internet delivery—Roku stepped in to absorb and distribute the massive backlog of old content gathering dust in studio vaults. Other digital TV distributors tried to do the same, but Roku had the advantage: they owned the last-mile connection to the consumer.
The Final Play: Advertising
To seal its dominance, Roku made its boldest move yet—going after the advertisers.
While others fight over content and subscribers, Roku is quietly building the most powerful ad platform in streaming. By owning the interface, the remote, the viewer data, and the screen itself, Roku can offer advertisers something no one else can: precision, scale, and exclusivity—all without needing to produce a single show.
Where are we going from here?